By Larry Claasen
AFRICAN countries must work together to drive investment in the energy sector.
This was the sentiment at the Continental Energy Investment Forum 2024, hosted by the South African Electrotechnical Export Council (SAEEC), in partnership with the Department of Trade, Industry and Competition (the DTIC) and, for the first time the Development Bank of Southern Africa (DBSA).
The event, which took place in Johannesburg and Cape Town was held under the theme “Collaborate, Renew, and Transition” and focused on investment opportunities within the African energy sector.
The forum facilitated discussions and the exploration of innovative solutions for the continent’s energy challenges. It hosted 40 delegates from 10 African countries, including Angola, the Democratic Republic of Congo (DRC), Egypt, Ghana, Kenya, Mozambique, Nigeria, Uganda, Zambia, and Zimbabwe.
Participants in the forum highlighted how collaboration between African countries has set the continent up for significant investment in the energy sector.
“Our energy, inward buying, and investment mission align with our domestic and continental industrialisation objectives. It recognises the important role of energy in overall economic development and the need for greater intra-African investments in this sector,” said Lerato Mataboge, deputy director general exports at the DTIC.
Mataboge was optimistic that the forum would see businesses in South Africa and other African countries conclude deals that would benefit all involved.
“We anticipate that they will form meaningful procurement, financing and trade partnerships to strengthen the African energy sector. We further aim for South African producers to identify energy projects in various countries which will benefit from South African energy-efficient products, engineering services and cutting-edge technology.”
She pointed out that the goals of Collaborate, Renew, and Transition are tied in with Agenda 2063 of the African Union (AU), which has a vision for intra-African trade levels to grow from 16% currently to 50% by 2045.
Aside from Agenda 2063, Mataboge noted that there are long-standing plans to further integrate Africa’s economies with the African Continental Free Trade Area (AfCFTA). AfCFTA aims to bring together all 55 member states of the AU, covering 1,3-billion people, into a single market.
“African leaders envisage that the African continental free trade area will be implemented together with plans for industrial development and infrastructure development towards an integrated Africa. All these plans will only materialise with energy as a catalyst and with the very important role-players in the room making their collective, intellectual and institutional contributions towards the integrated and prosperous Africa we want.”
Mataboge said there was no shortage of investment opportunities for funders looking to back energy projects in Africa.
“On the investment front, the African Development Bank has estimated that we would need approximately US$30-40 billion per annum over the next six years for Africa’s energy infrastructure growth to ensure universal access to electricity and to industrialise the continent.”
Mataboge pointed out that the opportunities were so ample because the need was so great.
“Currently, around 600 million Africans, that’s about 43% of the population of this continent, lack access to electricity.”
She said this was why there was a need to accelerate intra-African investments to narrow this gap.
Besides the backing of DTIC and DBSA, the forum was also supported by Brand South Africa and the Export Credit Insurance Corporation (ECIC).
